Nifty ends below 7800, Sensex falls 248 points; Sun Pharma up 4%

3:30 pm Market closing: The market has ended on lower note. The Sensex slipped 248.51 points or 0.9 percent at 25638.11 and the Nifty was down 82.25 points or 1 percent at 7781.90. About 1180 shares have advanced, 1566 shares declined, and 166 shares are unchanged.

Sun Pharma, Bharti Airtel, Coal India and Tata Steel were top gainers while HDFC, M&M, ITC, NTPC and ICICI Bank were major losers in the Sensex.

3:00 pm Market news: Capital markets regulator Sebi proposed norms to make electronic book mandatory for all private placement issues on debt basis, having a threshold of Rs 500-1,000 crore.

The proposals are aimed at improving the "efficiency, transparency of the price discovery mechanism and also reduction of cost and time taken for such issuance."

The move comes after the board of Securities and Exchange Board of India (Sebi), earlier this week, approved a proposal to introduce primary market debt offering through private placement on electronic book. To begin with, the electronic book may be provided as an alternative to the existing mechanism.

2:50 pm Reliance Comm deal: Anil Ambani's Reliance Communication today informed the bourses its decision to sign non-binding agreement with Tillman and TPG to sell its tower unit Infratel for an enterprise value of Rs 22,000 crore.

According to the agreement, the assets will be transferred from Reliance Infratel on a on-going concern basis into a separate special purpose vehicle (SPV), to be owned 100 percent by Tillman and TPG.

In a statement, the company said it will continue as an anchor tenant on the tower assets, under a long-term master services agreement (MSA), for its integrated telecommunications business.

"RCOM intends to utilize the proceeds of the proposed transaction only to reduce its debt," the statement further adds.

2:40 pm FM on fiscal deficit: Finance Minister Arun Jaitley today said he was not worried about fiscal deficit and government would be able to meet its target despite additional outgo towards the implementation of the 7th Pay Commission.

He admitted however that the impact of implementing the pay commission's recommendations, which will result in an additional annual burden of Rs 1.02 lakh crore on exchequer, would last for two to three years.

"I am not particularly worried about the fiscal deficit target," he said while replying to questions on the impact of the recommendations on public finances at the HT Leadership summit.

2:20 pm Oil imports: India's oil imports from Iran fell for the fourth straight month in November to touch an eight-month low, preliminary tanker arrival data obtained by Reuters shows, as its two biggest buyers cut purchases to meet annual targets.

Western sanctions against Iran's controversial nuclear programme limits the Gulf country's oil exports to 1-1.1 million barrels per day (bpd), with buyers such as India curbing annual purchases to 220,000 bpd.

But India, the world's fourth biggest oil consumer, has been stepping up purchases of cheaper crude from regions including the Asia-Pacific and Latin America.

The country's year-on-year imports from Iran fell nearly 45 percent to about 138,100 bpd in November - a 24 percent drop from October, according to the data and a report compiled by Thomson Reuters Oil Research and Forecasts.

2:00 pm Market Check
Equity benchmarks remained under pressure in afternoon trade with the Sensex down 178.16 points to 25708.46 and the Nifty falling 61.65 points to 7802.50.

Banking & financials, oil & gas, technology and auto stocks dragged while metals gained strength. The market breadth was marginally negative as about 1406 shares declined against 1221 advancing shares on the BSE.

Sun Pharma, Bharti Infratel, Reliance Communications, Jet Airways, Man Infra, Infosys and ITC were the most active shares on exchanges.

1:50 pm FM says: India will have to move cautiously on revising down interest rates on retail deposits, Finance Minister Arun Jaitley said on Friday, as it could hurt vulnerable sections like retired employees.

The finance ministry had agreed to cut interest rates offered to millions of savers in about USD 137 billion federal deposit schemes, following a larger-than-expected rate cut of 50 basis points by the central bank in September.

However, the decision has yet to be implemented.

1:40 pm Interview: The Seventh Pay Commission will have a positive impact on the sale of luxury products, feels Pradeeep Bakshi, President & COO, Unitary Products, Voltas.

In an interview to CNBC-TV18, he says the last three to four months have been good for the company and there has been an uptick in sales.

He expects a double digit growth in sales this year, partly driven by the promotional offers in the festive season. The company can retain its market share of 26 percent, says Bakshi.

For the mining and equipment business, the domestic markets have been sluggish, but the international markets are doing well, he says.

1:30 pm Market outlook: It is now more or less a consensus view that the US Federal Reserve is in line to raise interest rates, says Tushar Pradhan, CIO of HSBC Global Asset Management (India).

 The natural fallout of a rate hike is a strong dollar, which in turn implies weaker currencies across emerging markets, he explains. "This also means cost of funds will become dearer and while in absolute terms a 0.25 percent rate hike from 0 percent may not mean much, sentimentally it means a lot - it signals that the era of absolutely free money is over," he told CNBC-TV18.

As far as Indian markets are concerned, he advises investors to take a portfolio view on the pharma sector instead of a single stock. He believes Indian pharma companies are well placed to exploit global opportunities.

The market is still under selling pressure as the Sensex is down 157.71 points or 0.6 percent at 25728.91. The Nifty slips 55.50 points or 0.7 percent at 7808.65. About 1200 shares have advanced, 1341 shares declined, and 154 shares are unchanged.

Sun Pharma, Tata Steel, Coal India, BHEL and HUL are top gainers while M&M, HDFC, ICICI Bank, ITC and Wipro are losers in the Sensex.

The rupee hit a more than two-year low against the greenback on Friday as domestic shares fell after an underwhelming stimulus package from the European Central Bank, forcing the Reserve Bank of India to sell dollars via state-run banks.

Traders said the RBI likely stepped in to support the rupee at around 66.98 per dollar, sparking a rebound. The local currency was at 66.8600/8650 per dollar as of 12:11 pm

The disappointment over the ECB comes amid growing worries of the impact on India and other emerging markets as the US Federal Reserve gears up to raise interest rates for the first time in around a decade this month.

12:59 pm Market remains weak: The Sensex slipped 167.95 points or 0.65 percent to 25718.67 and the Nifty declined 59.80 points or 0.76 percent to 7804.35. About 1149 shares have advanced, 1359 shares declined, and 142 shares are unchanged on the BSE.

12:50 pm Rupee Update: The rupee hit a more than two-year low against the greenback today as domestic shares fell after an underwhelming stimulus package from the European Central Bank, forcing the Reserve Bank of India to sell dollars via state-run banks.

The rupee tumbled to 67.01 to the dollar, the lowest since September 4, 2013, from its previous close of 66.6525/66.6625.

Traders said the RBI likely stepped in to support the rupee at around 66.98 per dollar, sparking a rebound. The local currency was at 66.8600/8650 per dollar as of 12:11 pm

The disappointment over the ECB comes amid growing worries of the impact on India and other emerging markets as the US Federal Reserve gears up to raise interest rates for the first time in around a decade this month.

12:40 pm Buzzing: Shares of Motherson Sumi fell 4 percent intraday. Morgan Stanley has initiated coverage on the auto ancillary companies with an underweight rating. The brokerage sees a 20 percent downside risk on earnings. It has set a target price of Rs 238 per share as it feels aggressive margin expansion expectations are unlikely to be met.

''The street expects aggressive margin expansion at MSSL divisions Samvardhana Motherson Peguform (SMP) and Samvardhana Motherson Reflectec (SMR). We believe expectations are unlikely to be met, as regional mix appears set to weaken as share of China declines,'' brokerage says in a note.

12:20 pm RBI on bonds: Haunted by memories of India's 2013 markets crash, the country's central bank is engaging in a tricky balancing act with domestic yields to keep volatility out of its bond markets ahead of the Federal Reserve's historic policy decision this month.

The Reserve Bank of India (RBI) is seeking to prevent wild swings in bond markets by agreeing to pay higher interest rates to investors at bond auctions, people with knowledge of the central bank's operations say, while also buying bonds in the open market to stop yields rising too much.

Although India has outperformed many emerging markets this year, the country has not been immune to Fed jitters, with foreign investors selling around USD 1.7 billion in bonds and shares last month.

The people familiar with RBI operations say it is worried weak market participation at its auctions ahead of the Fed's December 15-16 meeting could trigger a selloff. In 2013, Fed "taper" fears sent the rupee to a record low.

12:00 pm Market Check
Equity benchmarks continued to see selling pressure in noon trade, weighed down by banking & financials, FMCG, technology and oil stocks. The BSE Midcap and Smallcap indices were down 0.6 percent and 0.2 percent, respectively.

The 30-share BSE Sensex dropped 205.58 points or 0.79 percent to 25681.04 and the 50-share NSE Nifty plunged 69.50 points or 0.88 percent to 7794.65. The market breadth was also negative as about 1327 shares declined against 1057 advancing shares on the BSE.

HDFC, ITC, ICICI Bank, HDFC Bank, Infosys, Reliance Industries, TCS, Mahindra & Mahindra and Wipro were down 1-2 percent.

Sun Pharma bucked the trend, up nearly 4 percent on getting USFDA approval for anti-cancer drug Gleevec.

11:55 am Market outlook: There will be a lot of headwinds for the market in the near-to-medium term as one can't ignore what is happening around the globe, says Amar Ambani, head of research at IIFL. He feels that markets will breathe a lot more easy once the US Federal Reserve action is out of the way. But more than the Fed action, one should be worried about what China will do to revive its economy. "China devaluing its currency (yuan) further is a risk," he told CNBC-TV18. According to him, such factors can result in emerging markets funds withdrawing from the region, resulting in most investors coming up with excuses ranging from the government not performing to corporate earnings.

11:45 am ECB: The European Central Bank's (ECB) move to hike rates was a disappointing one, says Geoffrey Dennis, Head-Global Emerging Market Strategy at UBS. The ECB on Thursday cut its interest rate on deposit facility by 10 basis points to -0.30 percent. It left the benchmark refinancing rate and interest rate on marginal lending rate unchanged at 0.05 percent and 0.30 percent, respectively. Dennis says the move to hike rates is temporary and expects the ECB to continue being fairly accommodative.

11:30 am Buzzing: Shares of Sun Pharmaceutical Industries surged more than 6 percent intraday after its subsidiary has received approval from the US health regulator for anti-cancer drug. "The subsidiary today has received final approval from the US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for generic version of Gleevec, imatinib mesylate tablets 100mg and 400mg," says the country's largest drug maker in its filing. Imatinib mesylate tablets are therapeutic equivalents of Novartis' Gleevec tablets. These tablets have annual sales of approximately USD 2.5 billion in the US, as per IMS MAT data in August 2015. These tablets are used for the treatment of chronic myeloid leukemia.

The market continues to struggle as global woes weigh on investor sentiments. The Sensex is down 211.87 points or 0.8 percent at 25674.75 and the Nifty slips 71.10 points or 0.9 percebt at 7793.05. About 1001 shares have advanced, 1200 shares declined, and 132 shares are unchanged.

M&M, HDFC, Wipro, ITC and ICICI Bank are major laggards in the Sensex while SUn Pharma, Tata Steel, Tata Motors, Coal India and Vedanta are top gainers.

Crude oil prices extended gains, as the dollar slumped against the euro, although market focus is fixed on an OPEC meeting in Vienna where the group is expected to reiterate its high output strategy.

A cheaper dollar is a positive for oil markets as it makes greenback-dominated contracts such as crude futures more affordable for those holding other currencies. Traders are keeping an eye on US non-farm payrolls data due Friday as it could help indicate the timing of a possible US rate hike.

10:55 am Market Update: Equity benchmarks remained under pressure. The Sensex fell 188.68 points or 0.73 percent to 25697.94 and the Nifty declined 63.70 points or 0.81 percent to 7800.45.

About 1036 shares have advanced, 1120 shares declined, and 125 shares are unchanged on the BSE. 

10:00 am Market Check
The market continued to see selling pressure in morning trade following global weakness post ECB policy. The Sensex fell 176.71 points or 0.68 percent to 25709.91 and the Nifty declined 60.40 points or 0.77 percent to 7803.75 due to selling in banking & financials, FMCG and technology stocks.

The broader markets outperformed benchmarks as the fall in Midcap and Smallcap indices was less compared to benchmarks. The market breadth was marginally negative as about 948 shares have advanced and 1075 shares declined on the BSE.

Tata Motors, Sun Pharma, Lupin, Bharti Airtel, Tata Steel, Coal India, Vedanta and Hindalco Industries bounced back, rising 0.3-0.8 percent.

9:55 am Oh my Gold: India is trying to persuade rich temples to deposit some of their gold hoards with banks to revive a plan to recycle tonnes of the precious metal and cut gold imports, sources said.

The scheme has only attracted about one kilogramme in a month, prompting the government to nudge temples through banks to hand over their treasures, the sources said, but at least one temple said it was still unconvinced by the plan.

In a bid to reduce the economically-crippling imports, Prime Minister Narendra Modi launched the much-publicised scheme to tap a pool of more than 20,000 tonnes of gold lying idle in homes and temples.

9:45 am FII view: Timothy Moe, Goldman Sachs expects 5 percent dollar returns for the Morgan Stanley Asia Ex-Japan in 2016, driven by mid-single digit EPS growth, little overall valuation change, 5 percent forex depreciation and a 3.4 percent dividend yield.

Fed tightening and China slowing are pointing to a soft Q1, he feels.

He has started 2016 with overweight rating on India as he believes the strategic case for India is one of the most positive in the region.

Moe expects the Indian government to continue to push forward on its extensive program of economic reforms which will enable growth to accelerate to 7.9 percent next fiscal year and ultimately to its potential growth of over 8 percent in later years.

9:30 am Buzzing: Shares of Zee Learn and Tree House jumped 10 percent intraday on Friday as the sector seems to be gearing up for consolidation. The child development and education subsidiary of Zee Entertainment is planning to merge with preschool chain Tree House Education.

"Board of directors of the company today has accorded in-principle approval for exploring consolidation options with Tree House," Zee Learn says in its filing.

Umesh Pradhan, CFO of Zee Learn, in an interview to CNBC-TV18 says Zee has also constituted and authorised a committee to finalise proposed consolidation and take all necessary steps including appointment of necessary consultants.

9:20 am Market check: The Sensex is down 231.71 points or 0.9 percent at 25654.91 and the Nifty is down 69.25 points or 0.9 percent at 7794.90. About 375 shares have advanced, 824 shares declined, and 57 shares are unchanged.

The market has opened in deep red as the Sensex is down 125.99 points or 0.5 percent at 25760.63. The Nifty slips 46.95 points or 0.6 percent at 7817.20. About 227 shares have advanced, 399 shares declined, and 46 shares are unchanged.

GAIL, BHEL, Vedanta, Infosys and SBI are major losers in the Sensex.

Asian equities traded lower after Wall Street closed in the red as investors digested comments from the Fed and the European Central Bank (ECB).

Federal Reserve chairman Janet Yellen said in a testimony before Congress that economic data since October backs the central bank's expectations of an improved job market. She added the bank will need to be cautious about raising rates form near zero, but added that - even after an initial increase - Fed funds rates would remain accommodative.

ECB president Mario Draghi announced monetary policy measures that fell short of market expectations. The central bank cut deposit rate by 10 basis points to negative 0.3 percent and said its asset purchase program will also be extended until at least March 2017 and broadened in scope.

The Indian rupee opened lower by 30 paise at 66.95 per dollar against previous close of 66.65.

Pramit Brahmbhatt of Veracity said, "We expect the rupee to appreciate as dollar weakened in the international market and the US non-farm payroll data is expected to be against the dollar."

The US dollar index fell more than 2 percent overnight to below 98 after hitting a plus-12-year high of 100.51 on Wednesday. The euro extended earlier gains to climb above USD 1.09 to hit its highest since November 3. The dollar index posted its worst daily loss since march 2009, while the euro had its biggest gain since that month.